No, funds in a 401k belong to your father, it's not like a company pension or social security benefits where when he passes payments may cease. His 401k should have a named beneficiary in the event of his passing. If he's unaware of the status, he should contact the administrator of his 401k account.

I'm sorry to hear of his illness.

Yes it is true to a point. That is if your father has not listed a beneficiary. It would be good to get him to list someone as a beneficiary to keep the money from going back. The policy should be looked into asap. Good Luck and hopefully all things will work out.

A 401(k) belongs to the owner. If the owner dies, it goes to the named beneficiary. If there is no named beneficiary, it goes into the estate -- where it might be needed to pay any medical expenses or other bills that are incurred prior to death.

I agree with the answer above. If your father dies, then the account would go to his listed beneficiaries. If he did not list beneficiaries, then it would go to his estate. I hope this answers your question. Thank you.